2)

a) What is the mean profit?

b) What is the maximum profit?

c) What is the probability of loss (in %) ?

ovou Parts Cost (Normal Distribution) Mean $90 Cost per Unit Standrard Deviation $10 $43 $44 $45 Demand (Uniform Distribution) $46 Lower Bound 7500 $47 Upper Bound 30000 45.00 $ 3 Data 4 Selling Price per Unit $249 5 Adm/Adv Cost $1,000,000 6 Direct Labor Cost 8 Lower End of Upper End of 9 Probability Interval Interval 10 0.1 0.0 0.1 11 0.2 0.1 0.3 12 0.4 0.3 0.7 13 0.2 0.7 0.9 14 0.1 0.9 1.0 15 Expected Direct Labor Cost = 16 17 Simulation Trials 18 19 (1) (2) (3) Direct Labor Cost 20 Trial Radom Number per Unit 21 1 0.385 22 2 0.528 23 3 0.037 24 4 0.587 25 5 0.087 115 95 0.572 116 96 0.098 117 97 0.024 118 98 0.392 119 99 0.670 120 100 0.381 121 Average (4) (5) (8) (7) First-Year Demand Parts Cost per Unit Profit Radom Number 0.909 0.195 0.574 0.028 0.848 0.756 0.753 0.822 0.703 0.560 0.137 (6) Radom Number 0.520 0.049 0.963 0.554 0.782 0.066 0.545 0.562 0.335 0.507 0.831 ovou Parts Cost (Normal Distribution) Mean $90 Cost per Unit Standrard Deviation $10 $43 $44 $45 Demand (Uniform Distribution) $46 Lower Bound 7500 $47 Upper Bound 30000 45.00 $ 3 Data 4 Selling Price per Unit $249 5 Adm/Adv Cost $1,000,000 6 Direct Labor Cost 8 Lower End of Upper End of 9 Probability Interval Interval 10 0.1 0.0 0.1 11 0.2 0.1 0.3 12 0.4 0.3 0.7 13 0.2 0.7 0.9 14 0.1 0.9 1.0 15 Expected Direct Labor Cost = 16 17 Simulation Trials 18 19 (1) (2) (3) Direct Labor Cost 20 Trial Radom Number per Unit 21 1 0.385 22 2 0.528 23 3 0.037 24 4 0.587 25 5 0.087 115 95 0.572 116 96 0.098 117 97 0.024 118 98 0.392 119 99 0.670 120 100 0.381 121 Average (4) (5) (8) (7) First-Year Demand Parts Cost per Unit Profit Radom Number 0.909 0.195 0.574 0.028 0.848 0.756 0.753 0.822 0.703 0.560 0.137 (6) Radom Number 0.520 0.049 0.963 0.554 0.782 0.066 0.545 0.562 0.335 0.507 0.831